The Kadhdhoo Airport Company, established to manage Laamu Kadhdhoo Airport, has recorded a cumulative loss of MVR 221 million since its establishment.
Kadhdhoo Airport Company was formed in 2011 as a 100 percent government-owned company to operate the Kadhdhoo Airport. In 2014, the airport's operation was handed over to the army. Kadhdhoou Airport is currently operated as "Kadhdhoo Military Base".
The 2020 audit report of the Kadhdhoo Airport Company Limited, signed by Auditor General Hussain Niyazy, said the company earns revenue from commercial operations, aeronautical operations, and rental of property.
According to the audit report, the company earned a revenue of MVR 6.6 million in 2020. The main reason for the losses for the company is the high cost of maintenance and repair of the property. The main contributors to the company's losses were the high costs associated with property maintenance and repair, along with elevated operating expenses.
The report noted that 84 percent of the company's revenue was spent on employees' salaries and allowances. The report also highlighted that the company suffered the same losses as other companies due to COVID-19.
Other reasons for the losses include the non-payment of dues by some companies. The audit revealed that Island Aviation, which operates the national airline Maldivian, was the biggest debtor, owing the company MVR 36.5 million.
The Auditor General has recommended reducing property-related expenditures and operating expenses to enhance the financial position of the Kadhdhoo Airport Company.
